Do you want to increase the returns on your mutual fund investment? Then, the Tata Small Cap Fund is the smart way to create wealth for you. As they say, “invest smarter, not harder.” This scheme invests in small cap stocks that hold great potential to grow within a very short period.
And to further understand exactly how this scheme is creating wealth for investors, this post explains its growth-oriented investment strategy. Not only this, you will also get to learn about whether SIP is suitable for you or a lump sum investment.
But before getting to the main topic, let us go through a quick overview of the scheme.
Overview of the Tata Small Cap Fund Regular Growth
Tata Mutual Fund launched the scheme in November 2018. As of March 2025, the AUM of the Tata Small Cap Fund Regular Growth is Rs 9,194 crore. The following are some key details related to the scheme that will build your interest:
- The fund offers a minimum SIP of Rs 100 only and Rs 5,000 for a lump sum investment.
- The scheme has given 19.52% annualized returns for 3 years.
- The expense ratio (fund management fees) of this scheme is 1.65%.
Such a low amount to start an investment in the scheme makes it very flexible. Even students can gain good returns from this scheme. And the cherry on top is a very low fund management fee.
Such smart moves make the scheme way better than other mutual funds in the market. And this is only one smart thing about the scheme. You will be amazed when you learn about its investment strategy.
Investment Strategy of the Tata Small Cap Fund
The scheme adopts a balanced yet aggressive investment strategy. It focuses on identifying potential small cap stocks in the market. While making sure of growth, it also invests a certain part in mid cap and other funds as well. This helps it gain stable returns in the long term.
It aims to provide its investors with the long term capital appreciation. And to do this, it allocates assets in a highly disciplined manner. The scheme invests in promising sectors like capital goods, chemicals, healthcare and others.
Due to this smart investment strategy, the Tata Small Cap Fund Regular Plan Growth has been able to generate great returns. But investors often remain doubtful whether the scheme is good to invest in or not. And it is completely understandable because they do not want to lose their money. So, the next section analyzes this doubt for you.
Is Tata Small Cap Fund Good To Invest?
Since this scheme invests in small cap stocks and which are highly volatile in nature. Investors are often concerned about whether they should invest in the scheme or not. But as you have read how good its annualized returns are. It can be said that this scheme is good for investment.
And to further support it, you can read the following points:
Fund Managers
The lead fund manager of the scheme is Mr. Chandraprakash Padiyar. He is a certified CFA (Chartered Financial Analyst) and an MBA graduate in Finance. He joined the fund in September 2018. And since then he has been actively contributing to the growth of the Tata Small Cap Fund. A person with such educational qualifications can profitably handle your money.
Portfolio Diversification
The scheme mainly invests in small cap companies. And to protect your money from the risk of market volatility, it maintains a well-diversified portfolio. By diversifying the portfolio, the harmful impact of market fluctuations is minimized. This way, the scheme gives you stable returns in the long term.
By now, you must be convinced to invest in the Tata Small Cap Fund Regular Plan Growth. But still, one doubt remains that is: which is better for you, SIP or lump sum investment? So let us dig deep and find the answer.
What Should You Do: SIP or Lump Sum?
To decide which is better for you, SIP or lump sum, let's have a short comparison:
SIP
The benefit of rupee cost averaging allows you to buy more units when the prices are low.
Through systematic investment, you can maintain disciplined investment for the long term.
You can also get a regular income which will help you manage your day-to-day expenses.
Lump Sum Investment
By making a large investment at once, you can earn higher returns when the market grows.
You will have to time the market risks each time you invest.
When the market drops, there is a possibility of panic withdrawal from the investment.
So, if you want a regular source of income and invest your savings for the long term, then a SIP is good for you. And if you have access to money and don't want to be bothered by remembering dates, then a lump sum is fit for you.
In both ways, the Tata Small Cap Fund Regular Growth will give you great returns. It depends on your financial goals and conditions, which way you choose to invest in the scheme. But being a small cap mutual fund scheme, it is also important for you to know who should invest in the scheme.
Who Should Invest in the Tata Small Cap Fund?
The following points tell who should invest in the scheme:
- Investors who have long term financial goals, for e.g. 5 yrs., 7yrs. or more.
- Investors who have high risk appetite to tolerate market fluctuations in the long term.
Thus, if you are willing to take the risk to get sweeter fruit, then the Tata Small Cap Fund Regular Growth is for you. Now, let's end the discussion with some final words on the scheme.
Final Words
To make sure that you smartly create wealth, you can start a SIP of your choice with the scheme. The features of systematic investment like the power of compounding will further make sure that you can get great returns. Just make sure that you stay as long as you can, so that you can create great wealth to secure the future for your family.
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